The U.S. government's record-long 43-day shutdown cost an estimated $6.1 billion in total economic losses across travel and related sectors, according to a post on the U.S. Travel Association website by its vice president of research, Joshua Friedlander.
U.S. Travel partnered with Tourism Economics to quantify the event's effect on the travel industry. The shutdown lasted from Oct. 1 to Nov. 12, and on average, the U.S. saw 88,000 fewer trips per day than normal, according to Friedlander.
"Government shutdowns are costly, disruptive and unnecessary," Friedlander wrote. "They disproportionately harm a sector that supports 15 million jobs and underpins America's economic growth. Protecting the continuity of travel operations and ensuring essential workers are paid gives due recognition to an industry that has proven to be essential."
The U.S. Travel and Tourism Economics analysis noted that most of the direct economic losses occurred during the shutdown period, "though some trailing effects are also included," according to U.S. Travel. The effects reviewed included curtailed government travel -- the study separated business travel by government employees and government contractors by mode of transportation (air and nonair) -- disruptions to air travel, travel uncertainty, attraction closures, and confidence and income effects.
The estimates include direct trip-related losses of $2.7 billion, equivalent to a 1.7% reduction in total travel spending during the shutdown, according to U.S. Travel. Flight delays added more than $183.3 million in losses.
Reduced government-related travel was the primary driver of lost travel spending. The estimated loss of government-related air travel was nearly $1 billion, while government-related nonair travel losses were estimated to be nearly $1.3 billion.
Friedlander added that there is bipartisan support in Congress to pay air traffic controllers, TSA officers and Customs and Border Protection employees when government shutdowns force them to remain on the job. Further, a December survey conducted by Ipsos with U.S. Travel found that four out of five Americans support paying air traffic controllers and TSA officers when forced to work during a shutdown.
Source: Business Travel News